Halfway through 2026, Japan’s top box office earners include many of the usual suspects: the latest entry in the perennially popular Detective Conan film series, The Super Mario Galaxy Movie, The Devil Wears Prada 2 and local hit Until We Meet Again.
But one unexpected entry, the ninth top-grossing film of the year to date with $16.7m (¥2.7bn) from 1.34 million admissions, is the Netflix original anime film Cosmic Princess Kaguya!.
Directed by Shingo Yamashita in his feature debut and produced by Studio Colorido, Studio Chromato and Twin Engine, the film is a modern take on the Japanese folktale The Tale Of The Bamboo Cutter, which previously inspired the late Isao Takahata’s 2013 Oscar-nominated animated film The Tale of the Princess Kaguya. It is the third film in a three-picture deal between Colorido and Netflix announced in 2022, after Drifting Home (2022) and My Oni Girl (2024).
It tells the story of a young woman in Tokyo who adopts an extraterrestrial baby, which grows quickly into young adulthood. The two then work together to become streaming stars in an online virtual reality world.
The film premiered on Netflix on January 22 and ranked seventh on the service’s global top 10 non-English-language movies in its first week. It was subsequently released in 19 Japanese cinemas on February 20 for what was intended to be a one-week run. But that release was expanded to over 100 cinemas (around 160 at its peak) and extended to a four-month run, playing until June 18.
Producer Kenshi Nagasaka of Twin Engine, which handled theatrical distribution, told Screen that the film was initially intended exclusively for streaming, a decision based on their experience from past titles.
“Prior to Cosmic Princess Kaguya!, we and Netflix had experimented with a simultaneous release model, which combined same-day streaming and theatrical releases, for two films: Drifting Home and My Oni Girl,” said Nagasaka.
“Through our experiences with those two previous films, we identified challenges with the simultaneous release model, such as the difficulty of conveying the message that a film is both a theatrical release and a Netflix exclusive, as well as the fragmentation of promotional efforts that split the audience’s attention.”
Break out hit
Any potential theatrical screenings for Kaguya! were to be limited to special one-off, fan-centric events, said Nagasaka, but “response after the streaming launch exceeded expectations, so we decided to scale up and launch a one-week limited theatrical run”.
This also exceeded expectations, with a reported 96% seat occupancy rate on opening day. Despite opening in 19 cinemas, the film ranked fifth in admissions during its first weekend.
“Our main goal in releasing the film in theatres was to allow fans to enjoy it on the big screen with high-quality sound systems,” said Nagasaka. “However, many fans found themselves unable to see the film because the theatres were sold out. We felt this defeated the purpose, so we realised we had to consider expanding the run even further. Additionally, we received requests from theatres themselves asking us to continue the run.”
In addition to expanding the release, the distributor also added elements to entice repeat viewership, including adding a post-credits music video and giving out “illustration boards” featuring key art.
Asked what brought so many viewers to see the film theatrically when it was already available on Netflix, Nagasaka cited a combination of visuals, music and story: “It’s structured in such a way that when you watch it again, you’ll have ‘a-ha!’ moments regarding the characters’ true intentions and backgrounds.”
The film’s success is also exceptional in that original anime films – those not based on pre-existing IP, such as manga (unless ancient folktale can be counted as IP) – have struggled at the box office in recent years. One pre-release strategy to build an audience was to release social media videos featuring characters from the film singing covers of popular songs. The film also incorporates elements popular with young people in Japan, such as Vocaloid producers and live streamers.
Looking to the future, while Nagasaka would not reveal specific titles, he said Twin Engine would continue to explore innovative approaches to distribution.
A further theatrical release of Cosmic Princess Kaguya!, this one for 4D cinemas (specifically, MX4D, 4DX, ScreenX, Ultra 4DX and Dolby Atmos) is scheduled for September 18.
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